How many of the following items would be included in a cash budget?
· Dividends paid to shareholders
. Doubtful debts
· Purchase of fixed asset
· Bonus share issue

Question

How many of the following items would be included in a cash budget?
 · Dividends paid to shareholders
. Doubtful debts
· Purchase of fixed asset
· Bonus share issue

Quizplus · Accepted Answer

Only two items would be included in a cash budget: Doubtful debts (as they affect cash inflows) and purchase of fixed asset (as it affects cash outflows). Dividends paid to shareholders and bonus share issue do not affect cash flow and therefore would not be included in a cash budget.

How Many of the Following Items Would Be Included in a Cash